2010 (1) TMI 1234

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....mstances of the case and in law, the Ld CIT(A) has erred in law in deleting the addition of Rs. 56,00,000/- made by the Assessing Officer u/s 68 of the IT Act being the unexplained credit on account of share application money and share premium money. 3. The Ld CIT(A) did not appreciate the fact that the assessee had failed to discharge the onus of proving the source and creditworthiness of the creditors/share applicants. 3. Brief facts of the case are that during this year, the Assessing Officer has made addition of Rs. 80.85 lakhs on account of share capital received during this year. It has been noted by the Assessing Officer in the assessment order that the assessee has received fresh share application of Rs. 80.85 lakhs at a....

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....how the shares of the assessee company could command premium of Rs. 490/- and hence this aspect should be restored back to the file of the Ld CIT(A) for afresh decision after examining this aspect. Regarding judgment of Hon&#39;ble Apex Court rendered in the case of Lovely Exports (Pvt) Ltd. as reported in 261 CTR 19, it was submitted that this judgment is not applicable in the present case because the facts are different. It was submitted that in the case of Lovely Exports (supra)< it was not the case of the revenue that the assessee company has received high amount of hare premium which could not be justified on the basis of balance sheet and future prospect of the assessee company. 5. As against this, Ld AR of the assessee supporte....

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....receipt of share application money in the present year can be accepted as a genuine transaction. Regarding judgment of Hon&#39;ble Apex Court in the case of Lovely Exports (supra), we feel that judgment is not squarely applicable in the present case because the facts are different. In that case, it was not the allegation of the revenue that because of high amount of share premium on per share, that the transaction in question was not genuine. Hence, we feel that this matter should go back to the file of the Ld CIT(A) for afresh decision. We, therefore, set aside the order of the Ld CIT(A) on this issue to the extent of addition deleted by him of Rs. 56 lakhs received by the assessee company during this year and restore this matter back to t....